A class action lawsuit sued Kim Kardashian, Floyd Mayweather and basketball star Paul Pierce as defendants for promoting a cryptocurrency called EthereumMax. According to Finbold, the platintiffs cited the as-yet unidentified celebrities and entities behind the tokens for causing the imitation value of Ethereum so they "can sell their portion of the Float for a profit." The lawsuit lists as defendants anyone who invested in the token between May 14 and June 27, 2021.
The accusations made by the scammers
As Gizmodo explains, the plaintiffs accuse the defendants of perpetrating a “pump and dump” scheme, in which investors sell their shares to make big bucks after orchestrating a rise in its value. The lawsuit claims the coin rose 632 percent in value after Mayweather and Pierce promoted it - the boxing star wore shorts with the URL EthereumMax during his exhibition match with Logan Paul, while Pierce tweeted. on it.
Meanwhile, Kardashian posted to EthereumMax on Instagram Stories, telling followers he heard about it from his friends and linking to his website. According to Morning Consult, 19 percent of respondents who said they heard about Kardiashian's post invested in EthereumMax as a result. The lawsuit claims that the day after Kardashian's post, the token's value plummeted by 98%. Furthermore, the creators of the coin allegedly sold their shares before the price fell, as evidenced by their portfolio assets.
Would it be better to stay out of it?
Celebrities have been promoting cryptocurrency tokens for some time and also creating their own. This is not the first or last time they will be involved in disputes involving a token - Mayweather, for example, was charged by the Securities and Exchange Comission in 2018 for failing to disclose that he was paid $ 100.000 to promote the offer. coin initial of Centra Tech in 2017. Two of Centra Tech's founders were arrested for stock and online fraud, with the SEC accusing them of "propagating non-existent relationships between Centra and well-known financial institutions" in an attempt to entice people to invest in the ICO.
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